U.S. House Republicans suggest raising debt limit, tax cut and spending cuts

Published 12/02/2025, 16:34
© Reuters.

Investing.com -- The U.S. House Republicans have suggested a new budget resolution that includes raising the debt limit by $4 trillion. This proposal is part of a larger fiscal strategy that also includes a $4.5 trillion tax cut and $2 trillion in cuts to mandatory spending over the next decade.

The proposed budget resolution, which outlines the Republicans’ fiscal plans, includes a significant increase in the debt limit. The proposal suggests a $4 trillion rise, a move that would allow the government to borrow more in order to finance its operations and meet its obligations.

In addition to the debt limit increase, the budget resolution also proposes a substantial tax cut. The Republicans have suggested a $4.5 trillion reduction in taxes, which would decrease the amount of money the government collects from individuals and businesses.

Furthermore, the budget resolution includes a proposal for significant reductions in mandatory spending. The Republicans have proposed cutting $2 trillion from mandatory spending over a ten-year period. Mandatory spending refers to areas of the budget that are required by law, such as Social Security and Medicare.

The proposed budget resolution offers a glimpse into the fiscal strategy of the U.S. House Republicans. It includes significant proposals for increasing the debt limit, reducing taxes, and cutting mandatory spending. As these proposals move through the legislative process, they will be subject to debate and amendments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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